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The Impacts of the Inwards and Outwards FDI on the Development Measured By HDI: the Case of United Arab Emirate

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  • Akram Masoud Haddad

    (College of Business Administration, American University in the Emirates, Dubai, United Arab Emirates.)

Abstract

Different studies conducted in past regarding the FDI policies in different countries and regions and its impacts on the recipient countries, most of these studies concentrated on the impact of FDI on the economic growth measured by the GDP. in this study the impact of both the inflow and outflow FDI on the economic growth measured by HDI which is the proxy for the health, income and education in the countries, United Arab Emirates is the case where there are both cases of the FDI flows are clear and big. Ordinary least square method is applied and both simple and multiple regressions is used, the results show that both inflow and outflow FDI have an impact on the HDI alone while considering both together only the inflow FDI has an impact on the HDI so that the impacts of the outflow is eliminated with the impact of the inflow FDI. The explanation of that is the inflow FDI brings with it many direct benefits to the people of the country while the outflow FDI brings indirect benefits to these people. However, country like United Arab Emirates should pay more attention for the both inflow and outflow investment so that the dependency on will be less.

Suggested Citation

  • Akram Masoud Haddad, 2018. "The Impacts of the Inwards and Outwards FDI on the Development Measured By HDI: the Case of United Arab Emirate," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 301-312.
    • Handle: RePEc:eco:journ1:2018-04-38
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    References listed on IDEAS

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    Cited by:

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    2. Manuel Fernandez & Mariam Mohamed Almaazmi & Robinson Joseph, 2020. "Foreign Direct Investment in Indonesia: An Analysis from Investors Perspective," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 102-112.

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    More about this item

    Keywords

    human development index; investment; foreign direct investment; United Arab Emirates; economic growth.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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